Diversified Gas & Oil PLC (DGOC) - Pre AIM Listing Newshttps://www.dgoc.com/news-events/pre-aim-listing-news
The latest news released by Diversified Gas & Oil PLCen-usEquisolvehttps://d1io3yog0oux5.cloudfront.net/_d694dcf918e7804a342ceff3939c587b/dgoc/logo.pngDiversified Gas & Oil PLChttps://www.dgoc.com
8831DGO closed an acquisition of 500 oil and gas wellshttps://www.dgoc.com/news-events/pre-aim-listing-news/detal/3339/dgo-closed-an-acquisition-of-500-oil-and-gas-wells
Wed, 01 Jul 2015 00:00:00 -0400https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3339/dgo-closed-an-acquisition-of-500-oil-and-gas-wellsDiversified Gas & Oil PLC has closed an acquisition of 500 oil and gas wells in various counties in Ohio from Broadstreet Energy. The acquisition includes approximately 35 Barrels/day and 1100 MCF/day, along with approximately 7000 acres of conventional leaseholds. Also included in the purchase is a commercial water disposal well operating at 1200 barrels per day.]]>Diversified Gas & Oil Unaudited Interim Results https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3340/diversified-gas-oil-unaudited-interim-results
Wed, 30 Sep 2015 00:00:00 -0400https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3340/diversified-gas-oil-unaudited-interim-resultsUnaudited Interim Results for the six months ended 30 June 2015

Diversified Gas & Oil Plc, a producing oil company with assets in Ohio and West Virginia, today announces its unaudited results for the six months ended 30 June 2015.

Chairman Statement

Overview first half 2015

The first half 2015 was met with a downturn in crude oil and natural gas prices. In order to mitigate a more substantial effect of the low price environment, management has long term natural pricing contracts and 65% of production hedged at US$90/BBL and US$3.81/MCF, in addition to continuing to maintain a low operating cost base.

Low pricing environments bring many opportunities to acquire existing production at lower pricing.

Key Highlights

In August 2014, DGO acquired Fund 1, DR, LLC, adding 200 oil and gas wells in West Virginia, USA. The acquisition includes 35 BBL/day of crude oil and 600 MCF/day of natural gas, along with approximately 6,500 acres of leaseholds.

In June 2014, DGO acquired 500 oil and gas wells in various counties in Ohio, USA from Broad Street Energy Company. The acquisition includes approximately 35 BBL/day of crude oil and 1,100 MCF/day of natural gas, along with approximately 7,000 acres of conventional leaseholds. This acquisition also includes the purchase of a commercial water disposal well operating at 1,200 barrels per day.

Both acquisitions were in areas where DGO already had operating presence, immediately reducing the acquired assets operating costs.

Developments during the Interim Period

On 24 June 2015, the Company’s Sterling Denominated Unsecured Bonds 8.5% were admitted to trading on ISDX Growth Market.

Continuously evaluate opportunities for new acquisitions that will add producing wells, allowing cash flow to increase while continuing to maintain a low operating cost;

Monitor the crude oil and natural gas prices when making decisions to drill existing inventory in the future to insure any drilling investment would be economical; and,

Continue to focus on maximizing production of neglected wells by evaluating the cost/benefit when considering the repair of lines, recompletion and reconnection of wells, adding compression where feasible and placing wells on a swab schedule.

Notes of Appreciation

I wish to once again thank our customers, stakeholders and business partners for their support of the Group in 2015. The Board and senior management are looking forward to a successful second half of 2015.

The proceeds of the placing will be used to provide the company with additional working capital.

The net proceed to be received by the Company are GBP990,000.

The GBP1,000,000 New Bonds will be admitted to trading on ISDX Growth Market under the ticker symbol DOIL on 15 October 2015.

Following the Placing, the issued Bonds of the Company will increase to 2,205,944 Bonds at par value GBP1.00. This figure may be used by Bondholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the bond capital of the Company under the Disclosure and Transparency Rules.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.

The directors of Diversified Gas and Oil Plc accept responsibility for this announcement.

The proceeds of the placing will be used to provide the company with additional working capital.

The net proceed to be received by the Company are GBP990,000.

The GBP1,000,000 New Bonds will be admitted to trading on ISDX Growth Market under the ticker symbol DOIL on 19 November 2015.

Following the Placing, the issued Bonds of the Company will increase to 3,205,944 Bonds at par value GBP1.00. This figure may be used by Bondholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the bond capital of the Company under the Disclosure and Transparency Rules.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.

The directors of Diversified Gas and Oil Plc accept responsibility for this announcement.

]]>DGO completed the acquisition of Texas Keystone assets https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3343/dgo-completed-the-acquisition-of-texas-keystone-assets
Fri, 20 Nov 2015 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3343/dgo-completed-the-acquisition-of-texas-keystone-assetsIn November DGO completed the acquisition of Texas Keystone assets adding an additional 1,600 conventional wells in Pennsylvania and West Virginia. The wells add approximately 6,400 mcf per day of additional gas production to the company. As a result of the two acquisitions, DGO now owns and operates approximately 4,000 wells in Ohio, West Virginia and Pennsylvania producing approximately 10,000 mcf per day of natural gas and over 200 barrels of oil per day.]]>Diversified Gas & Oil Additional Bonds https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3344/diversified-gas-oil-additional-bonds
Tue, 29 Dec 2015 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3344/diversified-gas-oil-additional-bondsDiversified Gas & Oil Plc (ISDX: DOIL), is pleased to announce that it has raised an additional GBP960,000, subject to admission to ISDX Growth Market, 8.5% Unsecured Bonds due 2020, of GBP1.00 per unit nominal value (the “Placing Price”) to raise gross proceeds of GBP960,000.

The proceeds of the placing will be used to provide the company with additional working capital.

The net proceed to be received by the Company are GBP912,000.

The GBP960,000 New Bonds will be admitted to trading on ISDX Growth Market under the ticker symbol DOIL on 29 December 2015.

Following the Placing, the issued Bonds of the Company will increase to 4,165,944 Bonds at par value GBP1.00. This figure may be used by Bondholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the bond capital of the Company under the Disclosure and Transparency Rules.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.

The directors of Diversified Gas and Oil Plc accept responsibility for this announcement.

Trading for the year to date has been challenging due to the softness of commodity prices, however the hedging program implemented by the Company has insulated cash flows and earnings for which it was designed. Oil hedges representing 50% of existing production were around $90 per barrel for all of 2015 and provided a lift to effective spot prices all year long. In addition, we utilized hedges for our natural gas production in 2015 that averaged around $3.13 to $3.85 per mcf. Those hedges represented approximately 70% of our production in the year.

The hedging positions and the production levels, along with our continued success of managing expenses helped manage our existing cash flow and despite the falling commodity prices for oil and natural gas our results for the year will be in line with the Directors forecasts.

In 25 June 2015 DGO listed its first issue of Bonds on the ISDX Growth Market and since then has raised GBP3.6m bringing the funds available to the Company to approximately GBP4.1m in four separate placings. These funds have been utilized to close on two acquisitions and for corporate purposes. Since listing, the Company has made two scheduled coupon payments on its bonds in September and December as required in the Bond Instrument.

In July DGO completed the acquisition of all the assets of Broadstreet Energy in Ohio. These assets included approximately 500 conventional oil and gas wells producing approximately 40 barrels of oil per day and 1,100 mcf per day of natural gas production. Also included in the purchase was a commercial salt water disposal well operating at 1,200 barrels per day of injection.

In November DGO completed the acquisition of Texas Keystone assets adding an additional 1,600 conventional wells in Pennsylvania and West Virginia. The wells add approximately 6,400 mcf per day of additional gas production to the company. As a result of the two acquisitions, DGO now owns and operates approximately 4,000 wells in Ohio, West Virginia and Pennsylvania producing approximately 10,000 mcf per day of natural gas and over 200 barrels of oil per day.

The Directors look forward to the coming year with confidence as the enlarged portfolio is projected by Management to deliver strong sales and increasing free cash flow even in the midst of a challenging commodity price environment. New natural gas hedges have been implemented which will assist in cash flow generation for 2016. Those hedges are for around 4,000 mcf per day of gas production and average $2.30 per mcf. Oil hedges have not been initiated for 2016 as the Company feels that minimal value can be obtained under the current swap prices with little downside risk to existing prices. The Company currently has an operating expense ratio of approximately $9.80 per barrel of oil equivalency and $1.81 per mcf equivalency which helps to sustain cash flows even in the low price environment.

The Company continues to identify strong M&A opportunities to purchase additional producing assets in its existing footprint. Low oil and natural gas prices have resulted in companies divesting noncore and distressed assets and DGO continues to be a buyer in this market. These assets will compliment our existing portfolio and provide us with an increase in revenues and net cash flow. Our ability to leverage our existing operating structure provides us with an opportunity to operate the assets more efficiently than larger companies with significant overhead.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.

The Directors of Diversified Gas & Oil Plc accept responsibility for this announcement.

]]>Diversified Gas & Oil Admission Announcement https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3346/diversified-gas-oil-admission-announcement
Thu, 10 Mar 2016 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3346/diversified-gas-oil-admission-announcementThe Directors of Diversified Gas & Oil Plc are pleased to announce that an application has been made for the further issue of up to GBP3,600,000 of 8.5% Unsecured Bonds due 2020, with a nominal value of GBP1 each, of the Company (the “Bonds”) to be admitted to trading on the ISDX Growth Market. The Company’s registered office is at Regis House, 45 King Williams Street, London EC4R 9AN. The expected admission date of new Bonds to be issued in connection with this Announcement is 14 March 2016.

The Company’s 8.5 per cent. Unsecured Bonds were originally admitted to the ISDX Growth Market on 24 June 2015. To date DGO has raise approximately GBP4.2m in five placings of the Bonds.

Company Information

Diversified Gas & Oil Plc was incorporated on 31 July 2014 in England and Wales as a public limited company by its founders, Robert Hutson Jr. and Robert Post.

It intends to use the proceeds of the issue of the new Bonds described in this Announcement to acquire approximately 1,000 conventional oil and gas wells and has entered into a Letter of Intent with a seller in Ohio, USA. These assets are considered non-core to the seller as it has shifted its focus to the Utica and Marcellus shales. The purchase price of the acquired assets is $4.8m, which represents a significant discount to current market price. The present value (“PV”) discounted future cash flows at the $4.8m purchase price represents a 70% discount rate of future cash flows.

These assets are currently producing over 225 BOPD and 3,500 MCF of natural gas per day. The production of these assets will generate a total revenue at current market prices in excess of $6.5m with EBITDA estimated at approximately $1.5m. The operating expenses for the acquired assets would be combined with the Group’s current operations in Ohio, resulting in a substantial cost reduction for the acquired assets.

On completion of the acquisition, the DGO Group will operate over 5,000 conventional wells in the Appalachian Basin, producing approximately 450 BOPD and 13,500 MCF per pay of natural gas.

Directors

The Directors have extensive senior level experience in private and public held companies, both within and outside the oil and gas sector.

The Directors of the Company, their age and positions are as follows:

Robert “Rusty” Hutson Jr., (Age 46, Chief Executive Officer)

Before founding the DGO Group in 2001, Rusty held finance and accounting roles for 13 years at Bank One (Columbus, Ohio) and Compass Bank (Birmingham, Alabama). He finished his banking career as Chief Financial Officer of Compass Financial Services. Rusty is a 50% owner of the Company and has a B.S. degree in Accounting from Fairmont State College, West Virginia. He is a former CPA (Ohio).

Robert Marshall Post, (Age 58, Chairman)

Robert joined the DGO Group in 2005. He was previously a corporate controller for Whiting Corporation for 3 years. He then purchased TramBeam, an overhead crane company, from Whiting Corporation and owned and operated this business for 20 years. Robert sold TramBeam in 2002 to a London-based corporation, FKI Industries. He has a B.S. degree in Accounting (Finance minor) from Jacksonville State University, Alabama.

Martin Keith Thomas (Age 51, Non-Executive Director)

Martin is a lawyer based in the city of London. Martin has built a strong reputation for advising companies and investment banks on flotations and other transactions on the markets of the London Stock Exchange. For the past twenty years, Martin has been one of the most active lawyers advising on public offerings of shares in London.

The Issue

The Company has applied for the new Bonds to be issued in connection with this Announcement to be admitted to trading on the ISDX Growth Market.

DGO Group has received a commitment for further placings of up to 1,000,000 of new Bonds to be issued at par with this Announcement. It is expected that the admission of the first tranche of such new Bonds to the ISDX Growth Market will take place on 14 March 2016.

Once an aggregate of GBP3.6m of the new Bonds have been placed another Information Memorandum will be issued for the next GBP3.5m commitment.

The net proceeds of the issue of the new Bonds referred to in this Announcement will be used by the Company to fund the intended acquisition and other appropriate value driven investment opportunities of small gas and oil operators across West Virginia and Ohio.

Information on the Bonds

The new Bonds bear interest from and including the applicable issue date at the rate of 8.5% interest per annum, payable quarterly in arrears in instalments on 31 March, 30 June, 30 September, and 31 December in each year. The new Bonds will be redeemed by the Company on the 23 June 2020.

]]>DGO completed the acquisition of all the conventional assets of Eclipse Resources https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3347/dgo-completed-the-acquisition-of-all-the-conventional-assets-of-eclipse-resources
Wed, 13 Apr 2016 00:00:00 -0400https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3347/dgo-completed-the-acquisition-of-all-the-conventional-assets-of-eclipse-resourcesOn 13 April 2016, DGO completed the acquisition of all the conventional assets of Eclipse Resources in the State of Ohio (USA). The assets acquired included approximately 1,300 conventional oil and gas wells producing approximately 250 barrels of oil per day (“BOPD”) and 3,000 MCF per day of natural gas production. This is the Company’s largest acquisition in the State of Ohio to date.

As a result of this acquisition, DGO now owns and operates approximately 5,000 conventional wells in Ohio, West Virginia and Pennsylvania, producing approximately 450 BOPD and 13,000 MCF per day of natural gas.

]]>Acquisition of 2,400 conventional oil and gas wells https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3348/acquisition-of-2400-conventional-oil-and-gas-wells
Thu, 30 Jun 2016 00:00:00 -0400https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3348/acquisition-of-2400-conventional-oil-and-gas-wellsOn June 30, 2016, DGO closed on the acquisition of 2,400 conventional oil and gas wells in Pennsylvania, USA from Seneca Resources Corporation. These assets are producing approximately 10,500 MCF of natural gas per day and 45 barrels of oil per day. This is the largest acquisition for DGO to date.

As a result of this acquisition, DGO now operates over 7,500 conventional oil and gas wells in Pennsylvania, West Virginia and Ohio producing approximately 23,000 MCF per day of natural gas (3,960 Barrels of Oil Equivalent (BoE) and over 500 barrels per day of crude oil.

Rusty Hutson, Chief Executive Officer, commented the following: “The Company continues to see strong deal flow and anticipates further acquisition opportunities in 2016”.

On June 30, 2016, DGO closed on the acquisition of 2,400 conventional oil and gas wells in Pennsylvania, USA from Seneca Resources Corporation. These assets are producing approximately 10,500 MCF of natural gas per day and 45 barrels of oil per day. This is the largest acquisition for DGO to date.

As a result of this acquisition, DGO now operates over 7,500 conventional oil and gas wells in Pennsylvania, West Virginia and Ohio producing approximately 23,000 MCF per day of natural gas (3,960 Barrels of Oil Equivalent (BoE) and over 500 barrels per day of crude oil.

Rusty Hutson, Chief Executive Officer, commented the following:

“The Company continues to see strong deal flow and anticipates further acquisition opportunities in 2016”.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.

The Directors of Diversified Gas & Oil Plc accept responsibility for this announcement.

Diversified Gas & Oil plc (ISDX: DOIL), is pleased to announce the appointment of Bradley G. Gray as Finance Director and US Chief Operating Officer. Mr. Gray is appointed to the DGO board with immediate effect.

Mr Gray qualified as a Certified Public Accountant with Arthur Anderson LLP and has a degree in Accounting from the University of Alabama. Prior to joining DGO, Mr. Gray held the position of Senior Vice President and Chief Financial Officer for Royal Cup, Inc., a US- based commercial coffee roaster and wholesale distributor of coffee, tea and other beverage related products. Previously Mr. Gray worked in the petroleum distribution industry as Executive Vice President and Chief Financial Officer for The McPherson Companies, Inc and in various financial and operational roles with Saks Incorporated, the NYSE listed retail group.

In accordance with his terms of his appointment Mr Gray has been granted an interest in 5% of DGO’s ordinary shares that will vest over a three year period.

Bradley G. Gray current and past (five years) directorships are as follows:

Current directorships

Past directorships (five years)

None

The McPherson Companies, Inc.

Other than the above there are no further disclosures required under Rule 70 and paragraph 21 of Appendix 1 of the ISDX Growth Market Rules for Issuers.

The directors of Diversified Gas and Oil Plc accept responsibility for this announcement.

]]>Diversified Gas & Oil intention to float https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3351/diversified-gas-oil-intention-to-float
Tue, 08 Nov 2016 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3351/diversified-gas-oil-intention-to-floatNEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY SECURITIES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL (“RESCTRICTED JURISDICTION”).

For immediate release

Diversified Gas & Oil plc

(“DGO”, the “Company” or the “Group”)

INTENTION TO FLOAT ON AIM

Diversified Gas & Oil PLC, a US based gas and oil producer, is pleased to announce its intention to seek admission of its issued, and to be issued ordinary shares, to trading on the AIM Market of the London Stock Exchange (“Admission”). The Company is seeking to raise approximately $60 million (£48.0 million) by way of a placing of new ordinary shares and expects that Admission will occur in December 2016.

DGO operates a number of conventional gas and oil producing wells across Ohio, Pennsylvania and West Virginia within the Appalachian Basin, one of the largest on-shore oil and gas fields in the United States. The Group’s daily production is in excess of 4,400boe from an estimated 24.1 million boe of proven developed producing reserves. The Company has a further 3.8 million boe of proven undeveloped reserves. DGO’s operational structure enables it to generate significant operating free cash flow, even in the current low energy price environment, with an average operating cost equivalent to $9.53/boe.

The Company has grown rapidly over the last two years, capitalising upon opportunities to acquire conventional, low risk, gas and oil producing assets from the larger US operating companies who typically are increasingly focused upon the larger scale opportunities across the United States from unconventional shale production. As a specialist operator of these conventional gas and oil assets, DGO is able to identify significant operational cost savings and to improve production efficiency in areas overlooked by the larger operators. Since 2014, through a series of acquisitions, the Company has successfully developed its portfolio of assets which are now generating consistent positive cash flows.

Acquisitions to date have been financed largely through borrowings. As at 30 June 2016, DGO had total net assets of $27.7 million and total borrowings of $42.5 million.

The Directors believe that the Company is well positioned to acquire further conventional assets and has a strong pipeline of further acquisition opportunities.

The Group’s gas and oil production in the six months to 30 June 2016 was 428,522 boe, up from 129,277 boe in the same period for 2015. Revenues for the six months to 30 June 2016 were $7.6 million (2015: $2.9 million). The Board anticipates that the Company will generate significant cash flows from its producing assets and that it will establish a progressive dividend policy, with a maiden dividend to all shareholders in respect of the year to 31 December 2016 expected to be paid on or before 30 June 2017.

Investment case

DGO is a growing gas and oil production company which has grown rapidly over the past two years by a series of successful acquisitions of producing assets

DGO is focused on the Appalachian Basin, an area of prolific hydrocarbon producing performance, which is geologically regarded as a low-risk oil and gas play

Low-cost, profitable production of over 4,400 boepd

Cash flow positive and able to adopt a progressive dividend policy. The Company expects to pay dividends semi-annually, the maiden dividend expected to be paid in or before June 2017

Experienced Board and management with a proven track record for acquiring, integrating and enhancing conventional oil and gas production assets at compelling valuations

Focus upon onshore conventional opportunities arising from:

Larger exploration and production companies concentrating on unconventional / shale hydrocarbon development

Lower cost and low risk profiles of conventional assets

Intention to raise approximately $60 million (approximately £48.0 million) by way of a placing to strengthen the Group’s balance sheet, enabling the Company to fund further acquisitions and to meet its wider working capital requirements.

Rusty Hutson, Founder and Chief Executive Officer, said: “DGO is at an exciting stage of development. We have demonstrated our ability to acquire sound gas and oil producing assets and to further increase the productivity of those assets. There is a strong pipeline of similar assets available to us, and with the support of the AIM market we intend to capitalise on these opportunities to create additional value and to secure long term positive cash flows for the benefit of DGO’s shareholders.

We believe that the timing and appetite for our investment story is strong. We are not reliant on speculative resource exploration or development but offer investors exposure to a sound, profitable dividend-paying play on the US energy market.”

DGO owns and operates a number of conventional gas and oil producing wells in the Appalachian Basin in the North Eastern United States. The Company has grown rapidly over the last two years, capitalising upon opportunities to acquire conventional, low risk oil and gas producing assets from the larger US operating companies who are today focused increasingly upon the opportunities elsewhere from unconventional shale production. Total production in the six months to 30 June 2016 was 428,522 boe, up from 129,277 boe in the same period for 2015. Revenues for the six months to 30 June 2016 were $7.6 million (2015: $2.9 million).

The Company’s operations are based entirely in the neighbouring states of Ohio, Pennsylvania and West Virginia, which cover part of one of the largest oil and gas fields in the US, known as the Appalachian Basin.

The Group began trading in 2001. DGO has a head office in Birmingham, Alabama and was incorporated England and Wales as a public limited company on 31 July 2014 by its founders, Robert “Rusty” Hutson Jr. and Robert Post.

To enhance the portfolio through active operating work programme, including workovers and infill low-cost development wells.

Acquisition and consolidation strategy

The recent advances in shale production have caused a significant shift in emphasis of many investors and companies in mainland USA. The drive for shale investment has resulted in conventional gas and oil opportunities becoming available at reasonable prices. The Board believes these opportunities will continue as energy prices remain in the current trading range, which will help drive DGO’s acquisition strategy.

DGO Bondholders

DGO has approximately $13.4 million of unsecured 8.5% bonds maturing in June 2020 (the “Bonds”). Under the terms of the Bonds, eligible Bondholders are to be offered the opportunity to convert their Bonds into ordinary shares at the time of Admission or to receive a cash offer for repayment of the Bond (or a combination of both). The Company intends to write to Bondholders to advise them of these proposals shortly.

Board of Directors

Robert Marshall Post, (60), Executive Chairman

Mr. Post joined Diversified Gas & Oil in 2005 and is a 50% owner with Mr. Hutson. Mr. Post was Controller for Whiting Corporation for 3 years. He then purchased TramBeam, an overhead crane company, from Whiting Corporation and owned and operated the business for 20 years. Mr. Post sold TramBeam in 2002 to a London based corporation, FKI Industries. He has a B.S. degree in Accounting (Finance minor) from Jacksonville State University – Alabama.

Robert “Rusty” Russell Hutson, (47), Chief Executive Officer

Before founding Diversified Gas & Oil in 2001, Mr. Hutson held finance and accounting roles for 13 years at Bank One (Columbus, OH) and Compass Bank (Birmingham, AL). He finished his banking career as CFO of Compass Financial Services. Mr. Hutson has a B.S. degree in Accounting from Fairmont State College – West Virginia. He is a former CPA (Ohio).

Prior to joining Diversified Gas & Oil in October 2016, Mr. Gray held the position of Senior Vice President and Chief Financial Officer for Royal Cup, Inc., a United States based commercial coffee roaster and wholesale distributor of tea and other beverage related products. Prior to Royal Cup, Inc., from 2006 to 2014, Mr. Gray worked in the petroleum distribution industry for The McPherson Companies, Inc. and held the position of Executive Vice President and Chief Financial Officer. Additionally, from 1997 to 2006, Mr. Gray worked in various financial and operational roles with Saks Incorporated, a previously listed New York stock exchange retail group in the United States. Mr. Gray has a B.S. degree in Accounting from the University of Alabama and he is a licensed CPA (Alabama).

David Johnson has enjoyed a long and successful career in the investment sector. He has worked at a number of leading City investment houses, as both an investment analyst and more recently in equity sales and investment management. During his career he has worked for Sun Life Assurance, Henderson Crosthwaite and Investec Securities. He joined Panmure Gordon & Co in 2004 where he worked until 2013, including as Head of Sales from 2006 and then Head of Equities from 2009. He joined Chelverton Asset Management in 2014 where he had specific responsibility for the Group’s private equity investments. David is a non-executive director of AIM quoted, Bilby plc, a holding company providing a platform for strategic acquisitions in the gas heating and general building services industries. David Johnson’s appointment as a non-executive director is conditional on the Company’s admission to AIM.

Martin Keith Thomas (52), Non-executive Director

Martin Thomas is a partner in the corporate team at Watson Farley & Williams in London. Martin specialises in advising on IPOs and secondary offerings of equity and debt on the London capital markets, corporate finance and M&A work, including cross-border and domestic acquisitions and disposals, joint ventures and private equity transactions. Previously named one of The Lawyer’s “UK Hot 100 Lawyers” and ranked by both Chambers and Partners and Legal 500, Martin advises clients operating in a variety of sectors, including oil and gas, renewable energy, natural resources and mining, climate change, financial services and early stage technology. During his legal career of 30 years, Martin has also held senior management positions including 7 years as the European Managing Partner of a global law firm headquartered in the United States.

FORWARD-LOOKING STATEMENTS

This announcement contains forward looking statements, which have been made after due and careful enquiry and are based on the Directors’ current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “targets”, “believes”, “expects”, “aims”, “intends”, “plans”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. The Board believes that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. These forward-looking statements speak only as of the date of this announcement. Save as required by law, each of the Group and Smith & Williamson expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward looking statements.

Prior to making an investment decision in respect of the Ordinary Shares, prospective investors should consider carefully all of the information within the Admission Document. The Board believes the risks set out therein to be the most significant for potential investors. However, the risks listed do not necessarily comprise all those associated with an investment in the Company. In particular, the Group’s performance may be affected by changes in market or economic conditions and in legal, regulatory and/or tax requirements.

IMPORTANT NOTICE

Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.

This announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company.

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended) (“FSMA”).

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (“United States” or “US”). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.

This announcement is not for release, publication or distribution, directly or indirectly, in or into a Restricted Jurisdiction. This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Restricted Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction. This announcement has been issued by and is the sole responsibility of the Company.

Smith & Williamson Corporate Finance Limited (“Smith & Williamson”) is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP (“Mirabaud”) is acting as joint broker and no one else in connection with the proposed placing and admission to AIM (“Admission”) and neither Smith & Williamson nor Mirabaud will regard any other person (whether or not a recipient of this announcement) as its client in relation to Admission nor will it be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to Admission. Apart from the responsibilities and liabilities, if any, which may be imposed on Smith & Williamson or Mirabaud by FSMA or the regulatory regime established thereunder, neither Smith & Williamson nor Mirabaud accepts any responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement respect, whether as to the past or the future. Smith & Williamson and Mirabaud accordingly disclaim all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of Admission or contents of this announcement or any such statement.

]]>Update to Bondholders https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3353/update-to-bondholders
Fri, 16 Dec 2016 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3353/update-to-bondholdersNEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY SECURITIES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL (“RESTRICTED JURISDICTION”).

For immediate release 19 December 2016

Diversified Gas & Oil plc (“DGO”, the “Company” or the “Group”)Update to Bondholders

Further to the announcement made on 8 November 2016, Diversified Gas & Oil PLC, a US based gas and oil producer, made the following offers to bondholders of the Company (“Bondholders”), conditional on the Company’s proposed admission to the AIM Market of the London Stock Exchange (“Admission”).

The Company has made an offer to all Bondholders (other than Bondholders in the United States) to buy back and cancel all Bonds in issue. As set out in the offer to Bondholders the consideration is to be satisfied by the allotment to Bondholders of new ordinary shares of the Company at a discount of 20% to the placing price at the time of Admission (the “Buyback Share Offer”). The Company has also made an alternative offer to Bondholders for the Company to repurchase the Bonds for cash at a price of £1.05 per Bond (the “Cash Alternative Offer”, together the “Offers”).

Bondholders could elect to accept (i) the Buyback Share Offer (if located outside of the United States) in respect of all of their Bonds or (ii) the Cash Alternative Offer in respect of all of their Bonds. If a Bondholder did not accept either the Buyback Share Offer or the Cash Alternative Offer in respect of all of their Bonds, the Company is not be obliged to redeem any of that Bondholders Bonds outstanding until the final redemption date being 24 June 2020. Any Bonds outstanding following the Offers will be de-listed from ISDX upon Admission and no alternative arrangements for dealing or trading in the Bonds will be arranged by the Company.

The offer letter, dated 16 November 2016 stated that Admission was expected to be on or after 6 December 2016. The Company has announced subsequently that Admission has been deferred to January 2017. Under the terms of the Buyback Share Offer and the Cash Alternative Offer, Bondholders would not receive interest coupon payments for the period from 1 October 2016 up to the date of repurchase of the Bonds or thereafter. The Company confirms that Bondholders who have accepted either of the Offers, as set out above, will now receive interest coupon payments for the period from 1 October 2016 to 31 December 2016. However no interest will be paid to Bondholders who have accepted either of the Offers, in respect of future periods from 1 January 2017.

As at the date of this announcement, the Company has received acceptances for the Cash Alternative Offer representing approximately 74 per cent. of the Bonds and acceptances for the Buyback Share Offer representing approximately 1 per cent. of the Bonds, both conditional on Admission. The Company confirms that the closing date for receipt of acceptances under the Offers has been extended to 13 January 2017.

As at the date of this announcement, Robert Post and Rusty Hutson Jr. each hold £216,000 of Bonds. Conditional on Admission, both Robert Post and Rusty Hutson have accepted the Cash Alternative Offer described above, in relation to all of their Bonds.

A further announcement will be made when appropriate.

The Directors of Diversified Gas & Oil PLC accept responsibility for this announcement.

This announcement contains forward looking statements, which have been made after due and careful enquiry and are based on the Directors’ current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “targets”, “believes”, “expects”, “aims”, “intends”, “plans”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. The Board believes that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. These forward-looking statements speak only as of the date of this announcement. Save as required by law, each of the Group and Smith & Williamson expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward looking statements.

Prior to making an investment decision in respect of the Ordinary Shares, prospective investors should consider carefully all of the information within the Admission Document. The Board believes the risks set out therein to be the most significant for potential investors. However, the risks listed do not necessarily comprise all those associated with an investment in the Company. In particular, the Group’s performance may be affected by changes in market or economic conditions and in legal, regulatory and/or tax requirements.

IMPORTANT NOTICE

Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.

This announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company.

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended) (“FSMA”).

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (“United States” or “US”). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.

This announcement is not for release, publication or distribution, directly or indirectly, in or into a Restricted Jurisdiction. This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Restricted Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction. This announcement has been issued by and is the sole responsibility of the Company.

Smith & Williamson Corporate Finance Limited (“Smith & Williamson”) is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP (“Mirabaud”) is acting as joint broker and no one else in connection with the proposed placing and admission to AIM (“Admission”) and neither Smith & Williamson nor Mirabaud will regard any other person (whether or not a recipient of this announcement) as its client in relation to Admission nor will it be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to Admission. Apart from the responsibilities and liabilities, if any, which may be imposed on Smith & Williamson or Mirabaud by FSMA or the regulatory regime established thereunder, neither Smith & Williamson nor Mirabaud accepts any responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement respect, whether as to the past or the future. Smith & Williamson and Mirabaud accordingly disclaim all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of Admission or contents of this announcement or any such statement.

]]>Results of Offers to Bondholders and Admission to AIM https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3354/results-of-offers-to-bondholders-and-admission-to-aim
Tue, 31 Jan 2017 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3354/results-of-offers-to-bondholders-and-admission-to-aimNEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY SECURITIES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL (“RESTRICTED JURISDICTION”).

For immediate release 31 January 2017

Diversified Gas & Oil plc (“DGO”, the “Company” or the “Group”)Results of Offers to Bondholders and Admission to AIM

Further to the announcement made on 19 December 2016, Diversified Gas & Oil PLC, a US based gas and oil producer, confirms the results of the offers made to bondholders of the Company (“Bondholders”) which closed on 13 January 2017, conditional on the Company’s proposed admission to the AIM Market of the London Stock Exchange (“Admission”).

Acceptances received by the Company under the Buyback Share Offer and the Cash Alternative Offer (as defined in the announcement dated 19 December 2016) are as follows:

Number of Bonds (£)

Percentage of Bonds

Buyback Share Offer

198,000

1.86

Cash Alternative Offer

10,345,244

97.14

Outstanding Bonds

106,640

1.00

10,649,884

100.00

The Cash Alternative Offer will be funded from the proceeds of the placing on Admission. As a result of the Buyback Share Offer, 380,769 Bond Conversion Shares shall be issued on Admission. Given the level of acceptances received under the Buyback Share Offer, the Company has waived the condition contained within the Buyback Share Offer that any Bondholder accepting the Buyback Share Offer shall agree that they will only dispose of any interests in their Bond Conversion Shares for a period of 18 months following Admission through Mirabaud, in order to maintain an orderly market in the Ordinary Shares.

Bondholders accepting the Buyback Share Offer or Cash Alternative Offer have been paid the interest payment due on the Bonds relating to the quarter ended 31 December 2016, however, no interest will be paid to Bondholders accepting either the Buyback Share Offer or the Cash Alternative Offer in respect of future periods following 1 January 2017.

For those Bondholders who accepted the Buyback Share Offer, the Company expects that share certificates will be sent by first class post at the risk of the shareholder within 10 business days of Admission.

This announcement contains forward looking statements, which have been made after due and careful enquiry and are based on the Directors’ current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “targets”, “believes”, “expects”, “aims”, “intends”, “plans”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. The Board believes that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. These forward-looking statements speak only as of the date of this announcement. Save as required by law, each of the Group and Smith & Williamson expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward looking statements.

Prior to making an investment decision in respect of the Ordinary Shares, prospective investors should consider carefully all of the information within the Admission Document. The Board believes the risks set out therein to be the most significant for potential investors. However, the risks listed do not necessarily comprise all those associated with an investment in the Company. In particular, the Group’s performance may be affected by changes in market or economic conditions and in legal, regulatory and/or tax requirements.

IMPORTANT NOTICE

Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.

This announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company.

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended) (“FSMA”).

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (“United States” or “US”). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.

This announcement is not for release, publication or distribution, directly or indirectly, in or into a Restricted Jurisdiction. This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Restricted Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction. This announcement has been issued by and is the sole responsibility of the Company.

Smith & Williamson Corporate Finance Limited (“Smith & Williamson”) is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP (“Mirabaud”) is acting as joint broker and no one else in connection with the proposed placing and admission to AIM (“Admission”) and neither Smith & Williamson nor Mirabaud will regard any other person (whether or not a recipient of this announcement) as its client in relation to Admission nor will it be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to Admission. Apart from the responsibilities and liabilities, if any, which may be imposed on Smith & Williamson or Mirabaud by FSMA or the regulatory regime established thereunder, neither Smith & Williamson nor Mirabaud accepts any responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement respect, whether as to the past or the future. Smith & Williamson and Mirabaud accordingly disclaim all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of Admission or contents of this announcement or any such statement.

]]>First Day of Dealings on AIM https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3355/first-day-of-dealings-on-aim
Fri, 03 Feb 2017 00:00:00 -0500https://www.dgoc.com/news-events/pre-aim-listing-news/detal/3355/first-day-of-dealings-on-aimTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN ADMISSION DOCUMENT AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY ORDINARY SHARES IN THE CAPITAL OF THE COMPANY, NOR SHALL IT (OR ANY PART OF IT), OR THE FACT OF ITS DISTRIBUTION, FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH OR ACT AS ANY INDUCEMENT TO ENTER INTO, ANY CONTRACT OR COMMITMENT WHATSOEVER.

3 February 2017

Diversified Gas & Oil PLC

(“DGO”, the “Company” or the “Group”)

First Day of Dealings on AIM

Diversified Gas & Oil PLC, a US based gas and oil producer, is pleased to announce the admission of its issued share capital to trading on AIM. This follows the completion of a placing of 61,000,000 new Ordinary Shares at 65 pence per share to raise $50 million (approximately £39.7 million) (before expenses), giving the Company a market capitalisation of approximately $86.4 million (approximately £68.6 million) on Admission at the Placing Price. The funds raised will be used for the repurchase of Bonds, repayment of existing debt facilities, costs of Admission and working capital requirements of the Group.

Smith & Williamson Corporate Finance Limited is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP is acting as lead broker.

Highlights:

Established, profitable, proven and fast growing US oil and gas company

Onshore licences in Appalachian Basin, northeastern US

Total proved reserves of oil of approximately 2,271 mmbbl (1,470 producing) and gas reserves of approximately 153,695 mcf (135,402 producing)

Current daily gas production is running at approximately 26,000 mcfd and oil production is approximately 475 bopd

Since incorporation in 2001, the Group has never drilled a non-producing well

Successful track record of sourcing, financing and closing acquisitions

Well defined growth strategy to grow production through organic and acquisitive means

DGO’s experienced management team and its proven ability to drive operational efficiency creates opportunities for additional value in a low commodity price cycle

The Board intends that not less than 40 per cent of operating free cash flow will be paid to Shareholders by way of a dividend.

Rusty Hutson Jr., Chief Executive Officer of DGO, said:

“We are delighted to be joining AIM and thank our existing and new shareholders for their support in the Placing. DGO has grown exponentially since inception in 2001 and we believe that our admission to AIM will provide the Company with a platform from which we can accelerate this growth trajectory. We offer a compelling proposition given our extensive acreage position in the Appalachian Basin, our low cost production, our proven track record for value creation and our commitment to pay a dividend to our shareholders. We have a well-defined growth strategy based on proven and low-risk operations and the opportunity for complementary acquisitions that we are uniquely positioned to execute on. We look forward to communicating on our progress as we begin our life as an AIM quoted company.”